Solana Res Share Discussion Threads

[dfgo] 11/12/2007 08:19

Costayaco-2 Drilling Commencement - Operational Update - Putumayo Basin -
Colombia

CALGARY, and LONDON, Dec. 11 /CNW/ - Solana Resources Limited
(TSX-V: SOR; AIM: SORL) is pleased to announce that the Costayaco-2 well
located in the Chaza Block, Putumayo Basin, southern Colombia was spudded on
December 6, 2007. Costayaco-2 is the second well in the Costayaco field that
was discovered in the second quarter of 2007. The Costayaco-1 discovery well
tested at a maximum combined rate of 5,906 barrels of oil per day ("bopd")
from four separate formations. Costayaco-2 is 625 metres northeast of
Costayaco-1 and is expected to penetrate the target structure at the same
depth as Costayaco-1. Drilling is anticipated to take 32 days with completion
and testing operations to follow. Costayaco-3, 965 meters west-southwest of
Costayaco-1, will be drilled with the same rig in the first quarter of 2008,
immediately following Costayaco-2. Costayaco-3 is expected to penetrate the
target structure lower than Costayaco-1 and should significantly increase the
Company's understanding of field size.

Costayaco-1

Costayaco-1 has been flowing from the Caballos formation at approximately
2,200 bopd (1,000 bopd net of royalty to Solana) with all production trucked
to the nearby Toroyaco facility. Testing of commingled production from two
zones (Caballos and Villeta T) using a jet pump is currently under way.

Seismic

The acquisition of 70 square kilometres of new 3-D seismic data over the
Costayaco field and 25 line kilometres of new 2-D data over Chaza block
exploration leads was completed in early December and the data is currently
being processed. The interpretation results from this data will be used for
planning future Costayaco wells and developing exploration plays respectively.
Additionally, the Costayaco-2 and Costayaco-3 results, in combination with the
new 3-D seismic data, will greatly enhance our understanding of field size and
allow us to plan field development, including additional drilling, facilities
and pipelines.

Infrastructure

A crude oil truck unloading facility at Uchupayaco, and the tie in of
this facility into the existing 8 inch line that runs to the Santana Station
has been completed. Costayaco production is now being trucked to this
facility, but will ultimately flow in a 10 kilometre 8 inch pipeline from the
Costayaco-1 location to Uchupayaco and into the existing pipeline system. This
line is currently in the planning stages and is scheduled to be operational by
June 2008.
Solana holds a 50% working interest in the Chaza Block with Gran Tierra
Energy Inc., the operator, holding the other 50% interest. The Chaza block is
subject to a fiscally attractive Agencia Nacional de Hidrocarburos contract
with no additional state participation.
Mr. Glenn Van Doorne, Chief Operating Officer of Solana, a Petroleum
Geologist, is the qualified person who has reviewed the technical information
contained in this news release.

Forward Looking Statements

Certain information regarding the Company, including management's
assessment of future plans and operations, may constitute forward-looking
statements under applicable securities law and necessarily involve risks
associated with oil and gas exploration, production, marketing and
transportation such as loss of market, volatility of prices, currency
fluctuations, imprecision of reserve estimates, mechanical problems, equipment
limitations, environmental risks, competition from other producers and ability
to access sufficient capital from internal and external sources; as a
consequence, actual results may differ materially from those anticipated.

Solana Resources Limited

Solana (
www.solanaresources.com
) is an international resource company
engaged in the acquisition, exploration, development and production of oil and
natural gas. The Company's properties are located in Colombia, South America
and are held through its wholly owned subsidiary, Solana Petroleum Exploration
(Colombia) Limited. The Company is headquartered in Calgary, Alberta, Canada.

NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS
RELEASE. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THIS RELEASE

[captainfatcat] 07/12/2007 07:16

Solana Resources Limited ("Solana" or the "Company") - Cocodrilo-1 Exploration
Well Results - Catguas Block - Catatumbo Basin - Colombia

CALGARY and LONDON, Dec. 7 /CNW/ - Solana Resources Limited (TSX-V: SOR;
AIM: SORL) announces that the Cocodrilo-1 well, located in the Catguas Block,
Catatumbo Basin, north eastern Colombia, will be plugged and abandoned.
Cocodrilo-1 was drilled to a total measured depth of 3,197 feet penetrating
the primary objectives, the Barco and Catatumbo formations. Although these
objectives were oil bearing, subsequent fluid tests and side wall core
analyses indicated that sub-commercial flow rates would be encountered.
Significant geological information was gained drilling Cocodrilo-1 which will
prove very valuable as Solana moves forward in this highly prospective area.
Solana is the operator of the Catguas Block with a 100% working interest.
Trayectoria Oil and Gas, Sucursal Colombia holds a 15% beneficial interest in
the portion of the block containing the Cocodrilo-1 well.
Cocodrilo-1 is the sixth well in Solana's 2007 six well exploration
program, and the second of the two well program on the Catguas Block. Solana
has had three successes in its 2007 exploration campaign.
Mr. Glenn Van Doorne, Chief Operating Officer of Solana, a Petroleum
Geologist, is the qualified person who has reviewed the technical information
contained in this news release.

[captainfatcat] 03/12/2007 07:07

Solana Resources Limited ("Solana" or the "Company") - Farmout Agreement -
Garibay Block - Llanos Basin - Colombia

CALGARY and LONDON, Dec. 3 /CNW/ - Solana Resources Limited (TSX-V: SOR;
AIM: SORL) is pleased to announce it has entered into a commercial agreement
to farmout a fifty percent (50%) interest in the Garibay block, located in
Colombia's Llanos basin, to CEPSA Colombia SA ("CEPCOLSA") a wholly owned
subsidiary of Compania Espanola de Petroleos, S.A. ("CEPSA"), the Spanish
based diversified energy company.
Subsequent to this farmout, Solana and CEPCOLSA will each hold a 50%
participating interest in Garibay. The Garibay block is subject to an
Exploration and Production Contract with Agencia Nacional de Hidrocarburos
("ANH"), the Colombian Government agency regulating the petroleum sector. The
farmout to CEPCOLSA requires the previous approval of ANH to be effective.
Under the terms of the agreement CEPCOLSA will be responsible for 100% of
the costs associated with the third phase exploration well which must be
drilled by October 2008. CEPCOLSA, the operator of a neighbouring block, will
also be the operator of Garibay, subject to the approval of ANH. The
exploration well location will benefit from the extensive 3D seismic which
Solana acquired in early 2007.
This farmout furthers Solana's exploration strategy to concentrate on the
five contiguous blocks it operates in the eastern portion of the Llanos basin
(Guachiria, Guachiria Norte, Guachiria Sur, Colona and San Pablo) and the
highly prospective operated Catguas block in the Catatumbo basin.

[captainfatcat] 20/11/2007 07:17

Solana Resources Limited ("Solana" or the "Company") - Update on Financing and
Restatement of Prior Financial Reports

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION
IN THE UNITED STATES/

CALGARY, AB and LONDON, UK, Nov. 19 /CNW/ - Solana Resources Limited
(TSX-V: SOR; AIM: SORL), the Colombia focussed independent oil and gas
exploration and production company, today announces that, in connection with
its "bought deal" financing previously announced on October 25, 2007, it has
filed a final short form prospectus to issue 24,330,000 common shares at a
price of C$2.20 per common share for gross proceeds of C$53,526,000. The
financing is being led by Tristone Capital Inc. and includes Orion Securities
Inc., Westwind Partners Inc., and Toll Cross Securities Inc., collectively
(the "Underwriters"). In addition, the Company has granted the Underwriters an
over-allotment option to acquire up to an additional 2,970,000 common shares
at a price of C$2.20 per common share at any time within 30 days of the
closing date. If the over-allotment option is exercised in full, additional
gross proceeds will be C$6,534,000 for total gross proceeds of C$60,060,000.
The offering is scheduled to close on or about November 26, 2007.
Application will be made to the London Stock Exchange for the common
shares to be admitted to trading on AIM and admission is expected to take
place on November 27, 2007.
Solana plans to use the net proceeds of this offering to fund exploration
and development of its Colombian oil and gas assets and for general corporate
purposes.
This news release shall not constitute an offer to sell or the
solicitation of any offer to buy the securities in any jurisdiction. The
common shares may be offered or sold in other eligible foreign jurisdictions
and to U.S. buyers on a private placement basis pursuant to an applicable
exemption from registration requirements in Rule 144-A or Regulation D of the
United States Securities Act of 1933, as amended.
The Company also announces that it has restated its financial results for
each of the year ended December 31, 2006, the three month period ended
March 31, 2007 and the six month period ended June 30, 2007.
The Company originally recorded as intangible assets the value of shares
issued to the former principals of Breakaway Energy Inc. ("Breakaway") in
exchange for all the outstanding shares of Breakaway. The Company has
concluded that the value of these shares should be expensed through earnings
and recorded as share capital over the vesting period of these shares, being
two years from October 1, 2006. The financial reports for the year ended
December 31, 2006 have therefore been restated to reduce intangible assets by
$8,036,403 and share capital and warrants by $8,036,403 as at
December 31, 2006, and to decrease depletion, depreciation, accretion and
impairment expense by $1,516,892 and increase stock-based compensation expense
by $1,516,892 for the year ended December 31, 2006, with no effect on the net
loss for the year.
The financial reports for the three month period ended March 31, 2007
have been restated to reduce intangible assets by $6,888,346 and share capital
by $6,888,346 as at March 31, 2007, and to decrease amortization of intangible
assets expense by $1,148,058 and increase stock-based compensation expense by
$1,148,058 for the three month period ended March 31, 2007. In addition, these
reports have been restated to reduce depletion, depreciation and accretion
expense by $800,000 which results in a decrease in the net loss for the three
month period ended March 31, 2007 of $800,000, from $3,932,598 to $3,132,598,
and a decrease in the net loss per share from $0.04 to $0.03 for the same
period.
The financial reports for the six month period ended June 30, 2007 have
been restated to reduce intangible assets by $5,750,626 and share capital by
$5,750,626 as at June 30, 2007, and to decrease amortization of intangible
assets expense by $1,148,058 and $2,296,116, respectively for the three and
six months ended June 30, 2007 and increase stock-based compensation expense
by $1,148,058 and $2,296,116, respectively, for the three and six months ended
June 30, 2007. In addition, as previously announced on October 31, 2007, these
reports have been restated to reduce depletion, depreciation and accretion
expense by $800,000 and $1,600,000, respectively, for the three and six month
periods ended June 30, 2007, which results in a decrease in the net loss from
$3,602,217 to $2,802,217; and from $7,534,815 to $5,934,815, respectively for
the three and six month periods ended June 30, 2007. Net loss per share
decreased from $0.05 to $0.03, and from $0.08 to $0.06, for the three and six
month periods ended June 30, 2007, respectively.
The restated financial reports for each of the year ended
December 31, 2006, the three month period ended March 31, 2007 and the six
month period ended June 30, 2007 are available in their entirety on the
Company's website at www.solanaresources.com or on the SEDAR website at
www.sedar.com.
All numbers in these reports are expressed in US dollars unless otherwise
indicated.
Please note that the commentary accompanying the restated figures has not
otherwise been updated for events subsequently announced following publication
of the original financial reports.

[captainfatcat] 20/11/2007 07:12

Solana Resources Limited ("Solana" or the "Company") - Juanambu Field
Production Commencement - Guayuyaco Block - Putumayo Basin - Colombia;
Cocodrilo-1 Commencement of Drilling Catguas Block - Catatumbo Basin -
Colombia

CALGARY, AB and LONDON, UK, Nov. 20 /CNW/ - Solana Resources Limited
(TSX-V: SOR; AIM: SORL) is pleased to announce that approval of commerciality
has been received for the Juanambu oil field, located in the Guayuyaco Block
in southern Colombia, and that Juanambu-1, the discovery well, has been placed
on production. Solana is also pleased to announce and that Cocodrilo-1,
located in the Catguas Block, north-eastern Colombia, commenced drilling on
November 16, 2007.

Juanambu Field

Juanambu-1 is currently producing approximately 1,400 barrels of oil per
day ("bopd"), 450 bopd net of royalty to Solana. This brings Solana's current
total Colombian production, net of royalties, to approximately 1,875 barrels
of oil equivalent per day (90% oil - 10% gas).
The Juanambu oil field was discovered in the first quarter of 2007,
tested in the second quarter of 2007 and an application for commerciality was
submitted to Ecopetrol, the Colombian national oil company, in the third
quarter of 2007.
Under the Association Contract that governs the Guayuyaco Block,
Ecopetrol backs in for a 30% interest in the Juanambu oil field concurrent
with the approval of commerciality for this field. Solana and Gran Tierra
Energy, the operator, each retain a 35% interest in the Juanambu field.
Production, currently being transported by truck to existing
infrastructure, will flow through a five kilometre, six inch flow-line that is
expected to be operational by mid January 2008.

Cocodrilo-1

Solana spudded Cocodrilo-1 on November 16, 2007. This well is expected to
take three weeks to drill with testing potentially to follow. Cocodrilo-1 is
targeting the Barco and Catatumbo formations that have been identified on 2D
seismic and are oil bearing in the nearby Tres Curvas-1 new field discovery.
Cocodrilo-1 is the sixth well in Solana's 2007 six well exploration
program, and the second of the two well program Solana is undertaking on the
Catguas Block. To date, Solana has had three successes in this 2007 campaign
including Tres Curvas-1 on the Catguas Block.
Solana is the operator of the Catguas Block with a 100% working interest.
Trayectoria Oil and Gas, Sucursal Colombia holds a 15% beneficial interest in
the portion of the block containing the Cocodrilo-1 well. The Catguas Block is
subject to a fiscally attractive Agencia Nacional de Hidrocarburos contract
with no additional state participation.
Mr. Glenn Van Doorne, Chief Operating Officer of Solana, a Petroleum
Geologist, is the qualified person who has reviewed the technical information
contained in this news release.

Forward Looking Statements

Certain information regarding the Company, including management's
assessment of future plans and operations, may constitute forward-looking
statements under applicable securities law and necessarily involve risks
associated with oil and gas exploration, production, marketing and
transportation such as loss of market, volatility of prices, currency
fluctuations, imprecision of reserve estimates, mechanical problems, equipment
limitations, environmental risks, competition from other producers and ability
to access sufficient capital from internal and external sources; as a
consequence, actual results may differ materially from those anticipated.

Solana Resources Limited

[norman the doorman] 15/11/2007 14:27

its because the spread is soo large around 6.3%. difficult to get parity with canada, you normally have to pay a premium. canada was $2.58 finish yesterday. equates to £1.29 which is the offer price today. so no difference. it is an opportunity if you think these are worth £3 or £4 though.

[heffermj] 15/11/2007 09:11

Good recent rises in Canada (7.5% yesterday) yet not reflected here - can anyone suggest why the difference exists - are we just slow to catch up - if so this would suggest an opportunity??

TIA

H

[jumbo66] 01/11/2007 06:15

up up [hd]

[captainfatcat] 31/10/2007 17:16

Half yearly report is out

[dfgo] 26/10/2007 07:37

Bought Deal Financing

[norman the doorman] 25/10/2007 21:41

2 PP's in a day ! the second for an extra $10m. + a 7% rise on the TSX. any thoughts ?

[jumbo66] 25/10/2007 14:33

that ok and at no discount realy onward chaps [hd]

[jumbo66] 25/10/2007 06:47

hi lads more to come here I think yep it was not great numbers but it was not dry thats the main as always dyodd thanks all for the home work hear tre jumbo[hd]

[norman the doorman] 24/10/2007 23:53

Cocodrilo to spud Nov 9th. 3 weeks to drill and then poss 3-4 weeks testing. This should take us up to the end of Q4 when we should also be looking forward to Costayaco 2 drilling and results. Im suprised the share price didn't fall more based on the hype but there seems to be a fair deal of support for the share price here and good potential going forwards. Does anyone have any firm details on the rig that we are to be using for Costayaco, is it the one currently being used by Amer ?

[bionicdog] 24/10/2007 08:00

Solana Resources

Our view: Risky buy

Current price: 114p

In January Aim-listed Solana Resources looked dead in the water. A succession of questionable management decisions plus less than stellar newsflow from its oil and gas exploration activities left the shares languishing at under 40p, leaving shareholders with little hope of a turnaround and nursing some ugly losses.

Nine months down the line, the company has engineered what looks like an impressive reversal of fortune. Starting from the top, the board shook up senior management, bringing oil and gas veterans Scott Price and Glenn Van Doorne on board. A strategic review led to the sale of some assets in which Solana had expensive commitments, refocusing its remaining resources on a smaller number of near-term prospects.

The end result has been a major re-rating of the shares on top of a sea change in the quality of its newsflow. A number of finds in its Colombian projects have moved into the final stages of development and production has trebled since January to 1,450 barrels of oil equivalent per day. Yesterday's positive test results at the Tres Curvas prospect add potentially another 300 barrels per day.

Giving the company any accurate valuation is hard given the lack of numbers to go on and investors should also be aware of the political risk involved in doing business in Colombia. But there could be more to play for here, and with more good newsflow, respected management and conservative reserve estimates, Solana looks worth a punt.

[sg31] 23/10/2007 22:49

I think the share price fall is more due to the fact that this was heavily ramped on the Canadian boards.This well is not massive as some over there expected but it is perfectly respectable.As others have already stated there are plenty of other holes we can make in Colombia.

[tuckswood8] 23/10/2007 16:14

Not what we were hoping for and consequently down almost 11% on TSX.

It seems to me that they may have pushed on rather too much when drilling due to the requirement to drill Cocodrilo-1, and now have a considerable amount of workover with the service rig to clean up the well and test properly. Unfortunate but always a risk with a company working to a tight schedule. Still believe the eventual outcome at Tres Curvas will be positive.

Even with this minor setback the company is still undervaued on existing assets and in any event Costayaco is the one I am pinning my hopes on.

[norman the doorman] 23/10/2007 14:25

not really market pleasing news, expect it to get hammered a bit in canada today. be interesting to see what the market makes of it. onwards to cocodrilo and then what im really interested in Costayaco 2,3,4 etc.

[someuwin] 23/10/2007 07:39

Excellent. Good flow rates from TC - with potentially more to come.

Now on to Cocodrilo-1, spudding early November.

[captainfatcat] 23/10/2007 07:09

Solana Resources Limited ("Solana" or the "Company") - Preliminary Positive
Test Results - Tres Curvas-1 - Catatumbo Basin - Colombia

CALGARY, Oct. 23 /CNW/ - Solana Resources Limited (TSX-V: SOR; AIM: SORL)
is pleased to announce preliminary test results for the Tres Curvas-1 wildcat
exploration well yielded a combined 180 barrels of oil per day (bopd) from
61 feet of perforations in two Catatumbo formation zones. With the application
of appropriate artificial lift it is expected that rates will meet or exceed
original expectations of 300 bopd.
Tres Curvas-1 is located in the Catguas Block, Catatumbo Basin, north
eastern Colombia. Solana is the operator of the Catguas Block with a 100%
working interest. Trayectoria Oil and Gas, Sucursal Colombia holds a 15%
beneficial interest in the portion of the block containing the Tres Curvas-1
well.
Tres Curvas-1 reached a total measured depth of 3,550 feet (3,518 true
vertical depth) on September 11, 2007 and a five zone cased hole testing
program commenced on September 16, 2007.
The drill stem tests (DST) and the logs and sidewall cores have
respectively confirmed that the targeted zones are significantly under
pressured and have high porosities and permeabilities. This combination most
likely resulted in formation damage during drilling which in all probability
restricted fluid inflow during testing.
DST-1 tested a 42 feet interval (3,362 - 3,404 feet) in the Catatumbo
formation. This interval was swabbed for three days and had a final swab rate
of 136 bopd (32 degrees API) with a 17% water cut. Subsequently, a jet pump
test was performed, however, a mechanical failure resulted in un-interpretable
data. Solana plans to re-evaluate this zone.
DST-2 tested an 18 foot interval (3,338 - 3,356 feet) in the Catatumbo
formation. This interval was swabbed for two days and briefly produced 56 bopd
with a 20% water cut after which the well stopped producing. Solana feels the
DST-2 interval has formation damage and plans to re-evaluate this zone after
an acid wash stimulation.
DST-3 tested a 19 foot interval (3,258 - 3,274 and 3,277 - 3,280 feet) in
the upper part of the Catatumbo formation. This interval was swabbed for three
days and had a final swab rate of 44 bopd (28 degrees API) with a 60% water
cut. Further evaluation of the data is ongoing.
DST-4 tested a 56 foot interval (3,074 - 3,116 and 3,122 - 3,136 feet) in
the lower Barco formation. This interval was swabbed for one day and produced
100 barrels of water and a trace of oil.
DST-5 tested a 14 foot interval (1,678 - 1,692 feet) in the Los Cuervos
formation. This interval was swabbed for two days and produced 124 barrels of
water and a trace of oil.
Due to a regulatory requirement to have reached total depth at
Cocodrilo-1 before November 27, 2007, Solana has decided to cease testing at
Tres Curvas-1 with the DWS drilling rig and move this rig to Cocodrilo-1
immediately. Cocodrilo-1 is the sixth well in Solana's 2007 six well
exploration program, and the second of the two well program Solana is
undertaking on the Catguas Block. Cocodrilo-1 is anticipated to spud around
November 9, 2007. To date, Solana has had three successes in its 2007
exploration drilling campaign.
Given the initial positive Tres Curvas-1 results, further testing to
determine optimal flow rates and initial reserves is required. A service rig
is being sourced to undertake this evaluation.
Mr. Glenn Van Doorne, Chief Operating Officer of Solana, a Petroleum
Geologist, is the qualified person who has reviewed the technical information
contained in this news release.

Forward Looking Statements

Certain information regarding the Company, including management's
assessment of future plans and operations, may constitute forward-looking
statements under applicable securities law and necessarily involve risks
associated with oil and gas exploration, production, marketing and
transportation such as loss of market, volatility of prices, currency
fluctuations, imprecision of reserve estimates, mechanical problems, equipment
limitations, environmental risks, competition from other producers and ability
to access sufficient capital from internal and external sources; as a
consequence, actual results may differ materially from those anticipated.